Frequently Asked Questions About Tax Relief
I received an audit letter from the IRS. What do I do now?
The best decision you can make is to contact a qualified tax professional. An audit is not something to take lightly and it can be overwhelming. Our team of tax relief experts work with people undergoing investigation by the IRS every day. Tell us your story, and let us start helping you reclaim your life.
What does “filing a tax extension” mean?
Filing a tax extension simply means that the IRS gives you extra time to file your taxes. Instead of submitting your taxes on April 15th, you can wait until October 15th, as long as the tax extension is approved.
What is “penalty abatement?”
Penalty abatement is a complicated way to say that taxpayers can request penalty relief. Once you address the penalties in question (such as Failure to File or Failure to Pay penalties), you can contact the IRS and have the penalties removed.
What is a bank levy?
A bank levy is a tool creditors use when you fall behind on payments. This legal action allows your creditors to remove funds from your bank account. Suffice it to say, you don’t want bank levies placed on your account. Our services can help prevent levies from being placed as well as remove existing levies.
What is tax compliance?
Tax compliance is when a taxpayer abides by state, federal, and international tax laws. You are in compliance when all your taxes are paid on time.
What is the IRS Fresh Start Program?
The IRS Fresh Start Program refers to several debt relief options offered by the IRS. The purpose is to make it easier for taxpayers to pay off their debts and remove penalties from their accounts, if they qualify. Let one of our tax experts help you find out if you qualify for this program today.
Why is the IRS garnishing my wages?
If you owe back taxes, the IRS may garnish your wages. But we can help! Reach out and let’s start examining your options together.
Can the IRS seize my bank account?
The IRS can garnish your wages, seize your property, and take money from your bank account if you owe back taxes.
How far back can the IRS audit?
Most of the time, IRS audits look at the past three years. However, if the IRS finds substantial errors, they can look at previous years. The IRS generally does not look back further than six years.
Can tax debt be forgiven?
The IRS does not usually forgive tax debt. However, there are several tax relief options that can lower the amount you owe, as well as make your debts easier to pay, including Installment Agreements and Offers in Compromise.
Tell us your story and our team of experts will negotiate with the IRS on your behalf.
Can the IRS take money from my bank account without notice?
The IRS must provide you with written notice before they take any money from your accounts, seize your property, or garnish your wages. You will have an opportunity to challenge the IRS’s claims before they can take your money or property.
What is power of attorney?
A power of attorney, or POA, is a document that gives your lawyer or tax relief expert the legal power to act on your behalf.
Why do I want a power of attorney on file?
A POA allows you to hand off the stress of dealing with the IRS to us. We can sign legal documents on your behalf and act in your best interests without you needing to be present every step of the way.
How can Confidential Tax Relief help me?
As soon as you partner with us, we’ll get between you and the IRS. We’ll then follow our signature process to stop the bleeding, identify the problem, and negotiate on your behalf with the IRS for the most favorable outcome possible.
What is tax relief?
“Tax relief” is a blanket term that refers to any number of programs and initiatives that can help you settle or reduce your tax debts.
How do I qualify for tax relief?
The IRS looks at a few factors when determining who is eligible for tax relief. Did you know that the amount you owe matters? Long-term payment plans are offered to taxpayers who owe $50,000 or less in taxes, penalties, and interest. People who owe up to $100,000 can be put on a short-term payment plan of 120 days or less. The IRS will also analyze your ability to pay, your income, your expenses, and your assets. Tell us more about your situation and we can help determine if you qualify for tax relief.
How can I reduce my tax debt?
The method with the best chance of success is to contact tax professionals for assistance. It’s important to understand the ins and outs of the tax system to achieve optimal results.
How do I get started?
That’s simple. Contact our team at Confidential Tax Relief —we can help.
Offer in Compromise
What is an Offer in Compromise?
An Offer in Compromise is an IRS program that lets qualifying taxpayers settle their debts for less than they owe.
Can I get an Offer in Compromise if I am making installment payments?
Yes. In many cases, our team of tax experts can facilitate the installment payments while the IRS evaluates the Offer in Compromise under review.
How long does the IRS take to approve an Offer in Compromise?
This process usually takes 8-10 months. While the IRS reviews the Offer in Compromise, all collection activities will be suspended.
Will an Offer in Compromise stop a levy?
Yes. The IRS cannot continue collection activities like property seizure or levies while they evaluate your Offer in Compromise.
What are Installment Agreements?
At their simplest, Installment Agreements are set monthly payments you make to the IRS to pay off your tax debts.
Are there different types of Installment Agreements?
There are four types of Installment Agreements from the IRS: guaranteed, streamlined, partial payment, and non-streamlined agreements.
- Guaranteed Installment Agreements: To qualify, you must owe less than $10,000; you cannot have entered an Installment Agreement in the last five years; you must pay off your tax liability within three years; you must be unable to pay your tax liability within 120 days; and you must pay at least the minimum monthly payment.
- Streamlined Installment Agreements: To qualify, you must owe less than $50,000; you must pay off your balance within 72 months; the proposed payment must be greater than or equal to the minimum acceptable payment.
- Partial Payment Installment Agreements: You must complete form 433-F to report your income and living expenses to the IRS. The IRS will then review your information and can then approve you. Once approved, you need to participate in a financial review once every two years.
- Non-Streamlined Installment Agreements: If you owe more than $50,000, this is your best option. You need to negotiate with the IRS and file form 433-F.
- Not sure if you qualify for an installment agreement plan? Contact us today to find out more and get this process started.
How long are IRS payment plans?
It depends. Your Installment Agreement will determine the length of your payment plan, but the most common plans involve you paying over a 36-month period, a 72-month period, or up to 120 months.
Our team of tax experts will negotiate with the IRS on your behalf to determine the best payment plan for your unique situation.
Do IRS payment plans affect my credit score?
IRS payment plans are not loans and are therefore not connected to your credit score.
Currently Non-Collectible Status
What is Currently Non-Collectible Status?
Currently Non-Collectible Status, or CNC Status, means that the IRS has decided that you are not able to make tax payments. The IRS will refrain from garnishing wages, seizing property, and levying your accounts.
Do I qualify for Currently Non-Collectible Status?
If you do not have money after paying for essential living expenses, you may qualify for CNC Status. Our team of tax relief experts can assist you in determining whether or not you do qualify.
How We Help
How long does the IRS tax relief process take?
That depends on the type of tax relief that will fit your unique needs. An Offer in Compromise typically takes 8-10 months for IRS approval while you may be approved for Currently Non-Collectible Status in two weeks. Confidential Tax Relief can help you determine the tax relief you need and work with the IRS on your behalf.
Do you help with delinquent tax returns?
Yes. We can file delinquent tax returns, assist with audit representation, and help with IRS tax settlement.
Reach out today and let’s work together to take back your life.
Can you help with my tax liens and levies?
Yes. Confidential Tax Relief has a Signature Process that will identify and resolve the tax problems that you’re currently facing, including tax liens and levies.
Do you charge for initial tax relief consultations?
No your initial phone consultation is free.
What areas of the United States do you serve?
We service taxpayers nationwide.
How do I schedule a tax relief consultation?
That’s easy! Just contact us.
What is a mail audit?
A correspondence audit is conducted by mail and is the most common type of IRS audit. It is the lowest level of IRS audit and is usually less intrusive than field or office audits.
This audit typically begins with a computer-generated letter (CP2000) or a correspondence letter (Letter 566). If you’ve received either notice, time is of the essence. Contact us immediately—we can help.
What is an office audit?
You’re summoned to appear at your local IRS office for an in-person meeting with an IRS examiner in an office audit. You are requested to bring supporting documentation at a specific time and date.
The IRS office audit process is more formal than the correspondence audit, and is usually conducted for more serious issues on the tax return. However, you don’t need to show up personally. Our team can take action to ensure your positions are fairly represented.
What is a field audit?
A field audit is the most detailed kind of IRS audit. In a field audit, an IRS representative will visit your home or business to examine records. Like an unwelcome houseguest, they come in and stay at your location for the duration of the audit.
Don’t worry—we can host the IRS in our offices so you can focus on your business while we work towards defending your legitimate tax positions. Don’t face the IRS alone—get our team behind you.
What if I received a CP504 or CP504B?
If you received a CP504 notice (CP504B for businesses), you have a balance due to the IRS for past taxes and have not paid the balance despite prior notices.
Failure to respond to a CP504 notice will result in the seizure of your state or federal tax refund. If there is still an outstanding balance after applicable refund levies, the IRS may then commence levying other property as well, including:
- Bank Accounts
- 1099 Income from your Customers and Payors
The IRS may also file a Notice of Federal Tax Lien notifying creditors that the government has a right to your interest in your assets. It can negatively impact your client’s credit score and ability to obtain credit.
You can stop this enforcement by satisfying the tax liability in full, setting up a payment plan, or establishing some other formal agreement with the IRS, such as an offer in compromise.
If a levy or lien is active on your account, contact us. We can help.
I received a CP90 letter; what do I do?
The purpose of the CP90 letter is to notify you of the IRS’s intent to levy certain assets for unpaid taxes. Included with this letter is a notice of your right to a Collection Due Process hearing with the independent office of appeals if you don’t believe you owe or you cannot pay the balance.
You should take action immediately, as time is of the essence. Resolve your balance or request a hearing within 30 days of the date on the CP90 letter to protect your income from seizure.
I received a CP11 letter; why do I owe?
The IRS mailed a CP11 notice to inform you of taxes due to the IRS adjustment. However, in most cases, the IRS changed the tax return filed during processing because of a perceived math error. Therefore, you must review your return with a tax professional if you disagree with the adjustments.
Why am I getting a CP14 notice?
A CP14 balance due notice shows taxes, interest, and penalties that are owed as well as any applicable credits and payments that have been applied to your account. The IRS sends this notice to notify you of an underpayment of taxes after a return has been filed.
Think of this as an initial invoice for payment. Receipt of this letter is your cue that the IRS is aware of your balance and NOW is the time to take action before the balance proceeds to collections enforcement. In many cases, you still have time to set up an installment agreement online through the IRS website. We’re here should you need our assistance.
Why am I receiving letter 1058?
Either you filed a tax return with the IRS without paying all taxes, interest, and penalties in full or have a balance created from a previous audit. By the time you receive this notice, the IRS has sent notices requesting payment but you’ve still not paid.
Failure to respond to the notice may result in imminent enforcement including bank levy, wage levy, income capture from payors, seizure of property and/or the filing of a Notice of Federal Tax Lien.
A levy can be prevented by satisfying the tax liability in full, setting up a payment plan, or establishing some other formal agreement with the IRS within 30 days.